Without regard to whether the new fiduciary regulation goes into effect as written and on the intended timeline, we’re seeing one benefit of the regulation: Americans have become more aware of the role of a fiduciary and the value of using one.

The Wall Street Journal ran a great article[1] examining the public “catching on” to the “fiduciary” term. The article noted that:

  • The new rule requires financial advisers and brokers to act in the best interests of their clients.
  • Since the final rule was approved, Google searches for “fiduciary” have greatly increased.
  • Also, since that time, the number of daily clicks on pages devoted to fiduciary-related topics on Investopedia have risen by around 150%.
  • Financial advisers, brokers, and planners are facing more questions about fiduciary status from their clients.

The article also acknowledges that the new fiduciary regulation would greatly impact the businesses of those who recommend investments that pay the highest sales commissions and fees, and that those financial professionals are hoping the regulation is wiped off the books.

Although, that extreme result would permit the ongoing practices of those who do not put their clients’ interests first, we’re hopeful that this greater awareness of the fiduciary standard will help individuals to avoid the current pitfalls of using a provider that is not comfortable with fiduciary responsibility.

 

 


[1] http://www.wsj.com/articles/fiduciary-finally-catches-onjust-as-gop-threatens-retirement-savings-rule-1481625002
Matt Eickman

Matt Eickman

Full Bio

Matthew loves to write. He also loves to think, though he’s probably a better writer than a thinker. He does not like to be on camera or in videos. This blog will allow him to write, challenge his ability to think, and, from time to time, test him with video blog entries.

He has a unique blend of legal and practical experience that helps us to serve our clients well. On the one hand, he has more than 12 years of private legal practice experience focusing exclusively on employee benefits, including time as a partner in an employee benefits boutique where he has represented clients in front of the DOL and IRS. On the other hand, he holds his FINRA Series 7 and 66 registrations and serves as the Director of ERISA Services for Qualified Plan Advisors.

Matthew likes to stay active. He provides fiduciary training, Investment Policy Statement design, and vendor oversight to our clients. He is an active member of the Employee Benefits Committee of the American Bar Association Tax Section, serving as Chair of the Defined Contribution Plans Subcommittee. He also has been appointed to the IRS TE/GE Gulf States Council and is a frequent speaker on regulatory developments, fiduciary responsibilities, and retirement readiness.

Most importantly, he stays active with his family. His wife, Laura, is the founder of REbeL, Inc., a not-for-profit organization. His three young boys are mixed up in far too many sports, and they enjoy traveling, watching college football, running with Dad, and rooting for the Huskers.
Matt Eickman
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